Santander

Hugeass304

I see the bank of santander share price is plunging towards the rights issue price ala all the other banks that announced a rights issue. How long before it's lower?

bjorn_again

Hugeass304 wrote: »

I see the bank of santander share price is plunging towards the rights issue price ala all the other banks that announced a rights issue. How long before it's lower?

And the implications are?

napoleon

Hugeass304 wrote: »

I see the bank of santander share price is plunging towards the rights issue price ala all the other banks that announced a rights issue. How long before it's lower?

You'd think they would have caught on by now and set the rights issue price higher than the current share price. Haha .No matter what lowly level they set the rights issue price the share price tumbles towards it at great haste.

travelgran

I'm confused about what's happening. I had 250 A&L shares which I understand are being converted to Santander shares on a 3:1 basis but haven't had notification of anything from the company yet. Should something be happening or has something got lost in the post? What have other people heard officially?

gozomark

Hugeass304 wrote: »

I see the bank of santander share price is plunging towards the rights issue price ala all the other banks that announced a rights issue. How long before it's lower?

about as long as the piece of string I'm holding....




sorry to be flippant, but my answer is as much pracrical use as any other you will get - ie no-one knows...

martinman3

travelgran wrote: »

I'm confused about what's happening. I had 250 A&L shares which I understand are being converted to Santander shares on a 3:1 basis but haven't had notification of anything from the company yet. Should something be happening or has something got lost in the post? What have other people heard officially?

A statement showing the number of Santander shares you have would have been sent at least 2 weeks ago, the letter was dated 20th Oct. Another letter stating that you could not take part in the rights issue but may receive some payment for the sale of your rights arrived this week. Sounds like they don't have your correct address.

You can contact the Santander Nominee Service Helpline on 0871 384 2000 (8p per min from landline) or write to

Santander Nominee Service
PO Box 4608
Worthing
West Sussex
BN99 6NZ

Broadback

As I wrote before, ordinary shareholders, at least in the UK, are unable to take up the rights issue, though (unlikely) if they are sold above the issue price we will pocket the difference, less costs of course. I consider it a scam, though as I THINK the prices will recover I don't want to sell, makes me very unhappy!

sabretoothtigger

Apparently uk share holders will get a chance in december to buy additional shares if they still want to

The rights were issued for a 46% discount I think. Rights have to be underwritten and in current market conditions the high discount may have been demanded by backers of the scheme.
Seems a bargain to me, but that is an oxymoron with banks seemingly

http://en.wikipedia.org/wiki/Rights_issue

gozomark

sabretoothtigger wrote: »

Rights have to be underwritten

no they don't, but in this case they were

sabretoothtigger

right! Who underwrote them btw

gozomark

Merrills were the lead